Directive for Alternative Investment Fund Managers (AIFMD) is one of the major EU regulatory initiatives to extend appropriate regulation and supervision to the alternative investment fund management industry.
According to AIFMD, an Alternative Investment Fund (AIF) is defined as a collective investment undertaking which raises capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors. An AIF may be either an open-ended or closed-ended fund and may take any legal form. An AIF has a board varieties, namely hedge funds, private equity funds, real estate funds and infrastructure funds.
Therefore, the AIFMD will significantly change the regulatory framework for a wide spectrum of funds. The new rules will not only affect the managers of AIFs but also signal some major changes for their depositories, administrators and external valuers.
To read the entire AIFMD, please visit here.